Like most insurance policies, yacht insurance usually comes with multiple coverages that each offers particular protections. Here are some of the more important coverages to consider if you're purchasing insurance for a yacht.
Agreed-Value Damage Coverage
Almost all boat and yacht insurance policies provide coverage if the vessel is damaged, but the amount of damage that they cover can be different.
Standard boat insurance policies commonly offer stated-value damage coverage, which insures a vessel for however much it'd be worth if sold. This type of coverage is fine when a vessel's value can easily be determined and is not too high.
Yacht insurance policies may instead offer agreed-value damage coverage. Agreed-value coverage insures a vessel for a prearranged amount that's chosen when a policy is purchased, and this amount can be more than the vessel's value if it were sold.
Agreed-value coverage allows you to insure a vessel for how much it'd cost to replace, which could be more than someone would pay for it. This coverage is also preferable if there aren't many similar yachts that were recently sold, meaning there are no yachts to derive your yacht's value from.
Search and Rescue Coverage
Should you ever be in trouble on the water, rescue boats will be deployed to assist—and they'll be deployed regardless of your ability to pay for the rescue operation. Although most states and countries don't charge for search and rescue operations, some states do have laws that allow those who are rescued to be charged.
Search and rescue coverage helps pay any costs associated with a rescue operation that's deployed for you, your onboard guests, or your vessel. All aspects of a rescue operation are typically covered if they're legally billed to you.
Longshore and Harbor Workers' Comp
Workers' compensation covers workplace injuries and illnesses. Longshore and harbor workers' compensation provides this coverage for employees who live aboard a yacht. This specialized coverage is frequently needed because yachts can operate within different states' boundaries and even within different countries' boundaries.
Boat Demonstration Coverage
Damage that occurs during non-boating activities might not be covered by standard agreed-value damage coverage. For example, the coverage might exclude demonstrations at boat shows.
Boat demonstration coverage can fill in such a gap, providing insurance protection even when your boat is being showcased at an event.
Precautionary Measures Coverage
Precautionary measures coverage will pay certain expenses that are reasonably taken to protect a yacht from a storm. Covered expenses could include docking the yacht or motoring it to another location.
To learn more, contact a company that offers things like Caribbean yacht insurance services.